The U.S. food stamp program was launched at a time when the nation was facing a tragic paradox: As millions of Americans suffered from hunger during the Great Depression, the country’s farmers agonized under a crushing bounty. The economic collapse of the 1930s had sapped food consumers of their purchasing power, so farmers found themselves with a glut of crops and livestock. That glut, in turn, sent agricultural prices plummeting.
In order to create artificial scarcity and boost prices, the U.S. Department of Agriculture under President Franklin D. Roosevelt initially paid farmers to plow under their fields and slaughter their pigs. The destruction of food at a time when so many stomachs rumbled sparked an outcry that prompted the Federal Surplus Commodities Corporation (FSCC), a New Deal agency established in 1933, to instead purchase excess food and distribute it directly to the needy at little or no cost. This initiative, however, dampened business for grocers and food wholesalers, who complained of government interference and unfair competition in the marketplace.
Facing the triple problems of farm surpluses, weak sales for grocers and hungry citizens at a time of 17 percent unemployment, the FSCC hoped tiny paper squares could solve its trilemma. Rochester, New York, then became the petri dish for a new government-run economic experiment.